Smart Manufacturing Market by Component (Hardware, Software, and Services), Application (Machine Execution System, Programmable Logic Controller, Enterprise Resource Planning, SCADA, Discrete Control Systems, Human Machine Interface, Machine Vision, 3D Printing, Product Lifecycle Management, Plant Asset Management, and Others), End-user (Automotive, Aerospace & Defense, Chemicals & Materials, Healthcare, Industrial Equipment, Electronics, Food & Agriculture, Oil & Gas, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2022-2031

Global Smart Manufacturing Market Analysis

The Global Smart Manufacturing Market Size was $249.5 billion in 2021 and is predicted to grow with a CAGR of 13.7%, by generating a revenue of $860.00 billion by 2031.

Global Smart Manufacturing Market Synopsis

Smart manufacturing is becoming increasingly popular due to the growing need for automation in various industries. Automation offers several benefits, such as increased efficiency, reduced costs, and improved safety. As a result, companies are investing in smart manufacturing technologies to automate their processes and gain a competitive advantage. The automotive, food & agriculture, and aerospace industries, in particular, are benefiting from smart manufacturing, as they require complex and precise manufacturing processes that can be streamlined through automation. For example, in the automotive industry, smart manufacturing technologies are being used to automate assembly lines, which help to reduce errors and improve efficiency. In the food & beverage industry, automation is being used to streamline production processes, reduce waste, and improve the quality of the final product. In the aerospace industry, smart manufacturing technologies are being used to improve the precision and quality of spare parts, while also reducing the time it takes to manufacture them. These factors are anticipated to boost the smart manufacturing industry growth in the upcoming years.

However, some of the implementation of smart manufacturing technologies often require a significant cultural shift within an organization, which can be challenging for some companies. This is because employees may be resistant to change and may require training and support to effectively utilize new technologies and processes. Additionally, there may be a lack of understanding about the benefits of smart manufacturing, which can make it difficult for decision-makers to justify the initial investment. Some companies may also face financial constraints or may be hesitant to invest in new technology due to concerns about cybersecurity or data privacy.

The increasing focus on energy efficiency in manufacturing is creating significant opportunities for the smart manufacturing market. By leveraging smart manufacturing technologies, manufacturers can optimize their energy consumption and reduce costs while maintaining or even improving production efficiency. Real-time monitoring of energy usage is a critical component of smart manufacturing solutions, as it allows manufacturers to identify areas of inefficiency and optimize their energy consumption. Additionally, the use of sensors and IoT devices can enable predictive maintenance, ensuring that equipment is running at peak efficiency and reducing energy waste from equipment downtime. Overall, smart manufacturing solutions can provide manufacturers with valuable insights into their energy usage and help them to improve their sustainability and reduce costs.

According to regional analysis, the North America smart manufacturing market accounted for the highest market share in 2021. North America is one of the most significant regions in the smart manufacturing market due to the presence of major market players, high technological advancements, and increased adoption of smart manufacturing solutions across various industries.

Smart Manufacturing Overview

Smart manufacturing is a concept that refers to the use of advanced technologies such as automation, machine learning, artificial intelligence, and the Internet of Things (IoT) to optimize manufacturing processes and increase efficiency, productivity, and profitability. The main goal of smart manufacturing is to create a connected and integrated production systems that are flexible, adaptive, and responsive to changes in demand, customer preferences, and market trends. Smart manufacturing leverages real-time data from various sources to optimize production processes, reduce downtime, and enhance quality control.

COVID-19 Impact on Global Smart Manufacturing Market

The COVID-19 pandemic has had a mixed impact on the smart manufacturing market. During the COVID-19 many businesses facing labor shortages and social distancing requirements adopted automation technologies at a faster pace than before. The COVID-19 pandemic accelerated the adoption of digital twin technology, which involves creating a virtual replica of a physical product or system. The digital twin allows for virtual testing and optimization of manufacturing processes, reducing the need for physical prototypes and enabling remote collaboration between teams. With travel restrictions and safety concerns, remote monitoring and predictive maintenance systems have been increasingly adopted, enabling real-time monitoring of production equipment and predictive maintenance to prevent downtime. The COVID-19 pandemic created significant supply chain disruptions, impacting the production and delivery of smart manufacturing components and equipment. Some businesses postponed or delayed investments in smart manufacturing technologies due to economic uncertainty and cash flow constraints. The pandemic led to workforce reductions in some industries, leading to a reduction in demand for smart manufacturing technologies that require skilled labor. The COVID-19 pandemic created both challenges and opportunities for the smart manufacturing market. While the market has faced supply chain disruptions and delayed investment in some cases, the pandemic has also accelerated the adoption of automation, remote monitoring, and digital twin technologies.

Increased Efficiency and Productivity to Drive the Market Growth

Smart manufacturing technologies have the potential to revolutionize the way businesses operate, leading to increased efficiency and productivity. By leveraging technologies such as the Internet of Things (IoT), artificial intelligence (AI), and automation, manufacturers can gain real-time visibility into their operations and make data-driven decisions to optimize their processes. Smart manufacturing is the ability to automate repetitive and time-consuming tasks, which can free up employees to focus on more strategic work. For example, robots can be used to perform tasks such as assembly or material handling, while AI algorithms can be used to analyze production data and identify opportunities for process optimization. Smart manufacturing technologies can also help reduce downtime by detecting potential issues before they become major problems. For instance, sensors can be used to monitor equipment performance and predict when maintenance is needed, allowing for proactive maintenance instead of reactive repairs.

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High Implementation Costs to Restrain the Market Growth

The high implementation costs associated with smart manufacturing can be a major restraint for SMEs. The cost of implementing smart manufacturing technologies can be significant, including investments in hardware, software, and infrastructure. This can include investments in sensors, robotics, data analytics tools, and other equipment that may be necessary for a smart manufacturing system, for small and medium-sized enterprises that may have limited resources. Without the necessary investments in place, SMEs may find it difficult to compete with larger companies that have already implemented smart manufacturing technologies. These factors are anticipated to hamper the smart manufacturing market growth.

Growing Advancements in IoT and Big Data to Drive Excellent Opportunities

The integration of IoT devices in manufacturing processes has enabled real-time monitoring of machines, equipment, and processes. IoT devices can collect data on various parameters, such as temperature, pressure, humidity, vibration, and more, to help manufacturers optimize their processes, reduce downtime, and improve overall efficiency. Big Data technologies can process and analyze vast amounts of data collected by IoT devices to provide insights into the manufacturing process. This enables manufacturers to identify inefficiencies, bottlenecks, and areas for improvement, which can lead to reduced waste, improved quality, and increased productivity. Smart manufacturing also enables predictive maintenance, where IoT sensors can detect signs of wear and tear or potential equipment failures before they happen. This helps manufacturers avoid costly downtime and reduce maintenance costs. Moreover, the integration of IoT and Big Data technologies in smart manufacturing can also enable manufacturers to implement just-in-time (JIT) inventory management. JIT allows manufacturers to reduce their inventory levels, improve production efficiency, and respond more quickly to changes in demand.

To know more about global smart manufacturing market opportunities, get in touch with our analysts here.

Global Smart Manufacturing Market, by Component

Based on component, the market has been divided into hardware, software, and services. Among these, the hardware sub-segment accounted for the highest market share in 2021, whereas the software sub-segment is estimated to show the fastest growth during the forecast period.

Global Smart Manufacturing Market Size, by Component, 2021

Source: Research Dive Analysis

The hardware sub-type accounted for the highest market share in 2021. The hardware segment of the smart manufacturing market includes various types of equipment, such as industrial robots, sensors, control systems, and other devices that are used to automate and optimize manufacturing processes. These technologies play a crucial role in driving the growth of the smart manufacturing market, as they enable manufacturers to improve efficiency, reduce costs, and improve quality. Industrial robots, in particular, are in high demand in the smart manufacturing market, as they can perform a wide range of tasks with greater speed, accuracy, and consistency than human workers. Sensors and control systems also play a critical role in smart manufacturing, as they provide real-time data on various aspects of the manufacturing process, enabling manufacturers to optimize operations and minimize downtime. The hardware segment of the smart manufacturing market is expected to continue growing in the coming years.

The software sub-type is anticipated to show the fastest growth in 2031. Smart manufacturing involves the use of advanced technologies, such as artificial intelligence (AI), the Internet of Things (IoT), and cloud computing, to optimize manufacturing processes and increase efficiency. Software plays a critical role in smart manufacturing, as it enables manufacturers to collect, analyze, and interpret data from various sources, including sensors, machines, and production lines. Manufacturing Execution Systems (MES) MES software is used to manage and monitor the entire manufacturing process, from raw materials to finished products. It provides real-time visibility into production operations and helps manufacturers optimize their processes to improve efficiency and reduce waste.

Global Smart Manufacturing Market, by Application

Based on application, the market has been divided into machine execution system, programmable logic controller, enterprise resource planning, SCADA, discrete control systems, human machine interface, machine vision, 3d printing, product lifecycle management, plant asset management and others. Among these, the product lifecycle management sub-segment accounted for the highest revenue share in 2021.

Global Smart Manufacturing Market Share, by Application, 2021

Source: Research Dive Analysis

The product lifecycle management sub-segment accounted for the highest market share in 2021. The product lifecycle management (PLM) solutions help manufacturers manage the entire lifecycle of a product, from concept to design, development, manufacturing, and end-of-life. The growing need for smart manufacturing solutions that can deliver real-time data and insights to support decision-making is driving demand for PLM solutions. PLM solutions enable teams to collaborate and work together more effectively, sharing information and insights across different departments and stakeholders. PLM solutions can help manufacturers manage complex product portfolios, enabling them to customize products to meet specific customer requirements. As regulations and standards become more complex, PLM solutions help manufacturers ensure compliance across the entire product lifecycle. These factors are anticipated to boost the growth of product lifecycle management sub-segment during the analysis timeframe.

Global Smart Manufacturing Market, by End-User

Based on end-user, the market has been divided into automotive, aerospace and defense, chemicals and materials, healthcare, industrial equipment, electronics, food & agriculture, oil & gas, and others. Among these, the automotive sub-segment accounted for highest revenue share in 2021.

Global Smart Manufacturing Market Growth, by End-User, 2021

Source: Research Dive Analysis

The automotive sub-segment accounted for the highest market share in 2021. The automotive segment is one of the key growth factors of the smart manufacturing market. With the increasing demand for high-quality and reliable vehicles, automotive manufacturers are turning to smart manufacturing technologies to improve their production processes. Smart manufacturing technologies such as Industrial Internet of Things (IIoT), artificial intelligence (AI), robotics, and big data analytics are being used to optimize the entire automotive manufacturing process, from design and prototyping to production and quality control. IIoT sensors are being used to collect data on various aspects of the manufacturing process, including equipment performance, production line efficiency, and product quality. This data is then analyzed using big data analytics tools to identify trends and patterns that can be used to optimize the production process. The use of smart manufacturing technologies in the automotive industry is helping manufacturers to improve their competitiveness by reducing costs, improving quality, and increasing efficiency.

Global Smart Manufacturing Market, Regional Insights

The smart manufacturing market was investigated across North America, Europe, Asia-Pacific, and LAMEA.

Global Smart Manufacturing Market Size & Forecast, by Region, 2021-2031 (USD Billion)

Source: Research Dive Analysis

The Market for Smart Manufacturing in North America was the Most Dominant

The North America smart manufacturing market accounted for the highest market share in 2021. North America is one of the leading regions in the smart manufacturing market, with a significant driver being the increasing adoption of advanced technologies such as IoT, artificial intelligence (AI), and big data analytics. The region has a highly developed manufacturing sector, which is constantly looking for ways to improve efficiency, reduce costs, and increase productivity. The use of smart manufacturing technologies has enabled manufacturers in North America to achieve these goals by providing real-time insights into their operations, helping them optimize processes, and reducing downtime. Consumers expect more personalized products and services, and smart manufacturing technologies can help manufacturers deliver on these expectations. By using data analytics and machine learning algorithms, manufacturers can analyze customer preferences and behavior to create customized products that meet their specific needs.

Competitive Scenario in the Global Smart Manufacturing Market

Investment and agreement are common strategies followed by major market players. For instance, in July 2021, Qualcomm began applying its advanced 5G technology to smart manufacturing by unleashing the power of IoT.

Source: Research Dive Analysis

Some of the leading smart manufacturing market players are ABB Ltd., Siemens, General Electric, Rockwell Automation Inc., Schneider Electric, Honeywell International Inc., Emerson Electric Co., Fanuc UK Limited, Fujitsu Global, and IBM.